Investment thesis
Welcome to Orchid's Palladium Weekly report, in which we discuss palladium prices through the lenses of the Aberdeen Standard Physical Palladium Shares ETF (PALL).
PALL has experienced a violent sell-off since November 8, driven by long liquidation in the palladium futures market on hefty trading volumes.
While this defies our Q4-19 bullish view, we emphasize that the sudden sell-off is not abnormal in nature considering the historically volatile behavior of palladium spot prices.
Fundamentally, the palladium market remains deeply tight (despite the global automotive recession), which is evident in the backwardation